FARMINGTON – A judge ruled Friday that a German couple defaulted when they failed to appear for a contempt of court hearing. The couple had failed to comply with an order to provide financial documents on the assets of a former wealthy Phillips doctor.
Justice Michaela Murphy also said she would determine the sanctions for the default and issue an order with any fees to be paid by John and Gudron Stifel of Germany, defendants in the case.
Murphy requested attorney Thimi Mina, representing Richard and Lorraine Chandler of Strong, to submit an itemized list of hours spent prosecuting the motion of contempt and an hourly wage to the court.
Lee Bals, the new attorney for the Stifels, could not enlighten Murphy about the reason the Stifels were not in the courtroom. Co-defendant Mary Wagner-Burkhart of Kentucky was there.
Murphy made the ruling after the couple failed to appear in court and to provide a financial account of the assets of retired Dr. Margarete “Gretl” Hoch, formerly of Phillips. The court had subpoenaed the Stifels to appear in Franklin County Superior Court, Murphy said.
In February, Murphy had ordered all parties, including Hoch, to provide sealed documents to explain where Hoch’s millions in assets have been spent since January 2006. According to court documents, it is estimated that Hoch has about $7 million in assets spanning both countries, with assets in the United States targeted to go to charitable Maine organizations upon her death.
Murphy, also at that time, denied a request from Hoch’s and the then Stifel’s attorney, Alan Perry, to dissolve a temporary restraining order that was issued in October 2007 to uphold the Chandlers’ power of attorney over Hoch’s assets. Hoch gave the Chandlers’ power of attorney with broad responsibilities over her personal, financial and medical affairs in 2001, according to court documents. The restraining order also invalidated any purported power of attorney to the Stifels and Wagner-Burkhart or anyone else, unless the court makes that decision.
Perry is now only representing Hoch, and Bals is representing the Stifels and Burkhart.
Eight attorneys were in the courtroom Friday, including two representing separate banks and a law professor who has been the Chandler’s liaison with the German court.
There are parallel court proceedings going on in Germany, as well as an appeal by Hoch’s attorney there to reverse a denial to disqualify a judge handling the case for partiality, because he wouldn’t continue the case nor change an appointment date to meet with Hoch, professor Peter Murray said.
There is also a motion to disqualify the German court’s appointed mental health expert who was evaluating Hoch, and he has since withdrawn from the case, Murray said. The court appointed a new expert, Murray said, as he updated the court on the files in the case in Germany.
Conflicting information has been provided to the court about the health of 84-year-old Hoch. Some information indicates she is well and competent but suffering from leukemia, other information indicates she is frail, in poor health and incompetent.
Perry said he last spoke to Hoch in April and that she has bad days and good days but is healthy besides having leukemia.
Murphy said attorneys’ testimonies cannot be accepted as evidence and that she needs proof of Hoch’s condition. Bals did submit copies of certified documents for the record Friday.
Mina said the Chandlers are prepared to provide information to the German court and surrender Hoch’s U.S. funds and end the lawsuit if the German court appoints a guardian to advocate in her best interest.
The Chandlers’ have been denied access to Hoch by the Stifels since late last year, Mina said, and want to be assured she doesn’t want them to take care of her anymore.
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